Two non-profit organizations based in Maryland and Virginia have been ordered to permanently close following an investigation into financial misconduct. Maryland Youth Club of America, Inc. and Virginia Youth Club of America, Inc. were found to have recruited children from low-income areas to sell candy, presenting the proceeds as supporting scholarships and enrichment programs for at-risk youth, while funds were instead used for personal purposes. The findings emerged from a joint investigation led by D.C. Attorney General Schwalb, in coordination with Maryland Attorney General Anthony Brown, Maryland Secretary of State Susan Lee, and Virginia Attorney General Jason Miyares.
According to the Office of the Attorney General for the District of Columbia, the organizations collected more than $857,000 in candy sales between 2018 and 2022. The AG’s office stated, "the organization was unable to show that children were paid for their work soliciting donations, or that they received any trips, scholarships, or other benefits." The investigation identified Jule Huston, a New York resident and president of both non-profits, as the principal responsible. Huston and his associates were found to have mismanaged a substantial portion of the funds, which remain unaccounted for.
The investigation found that Huston transferred more than $23,000 from Maryland Youth Club’s funds to his personal accounts and to associates, and illegally destroyed financial records for the organization covering 2020 to 2023. As part of the settlement, Huston is prohibited from engaging in any nonprofit activities or soliciting charitable donations in the District of Columbia, Maryland, and Virginia. He is also barred from serving as an officer or director of any nonprofit in these jurisdictions. The organizations have been ordered to formally dissolve, and Huston is required to provide documentation confirming the dissolution.
Attorney General Schwalb led the enforcement efforts. The two youth clubs and Jule Huston are required to collectively pay a $5,000 fine, which will be redirected to support local nonprofits that provide services to at-risk youth.
The case highlights ongoing efforts by the OAG to oversee nonprofit activities and ensure that funds are used in accordance with an organization’s stated mission, without benefiting private individuals in leadership positions. The OAG encourages anyone who suspects nonprofit misconduct in the District to report it to the office. Nonprofits in Maryland, DC, and Virginia have been reminded that charitable activities must adhere to legal and ethical standards.
